US organization is sued for SEC officials for conflicts of interest in the Ripple case
US organization is sued for SEC officials for conflicts of interest in the Ripple case
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- Empowr sued the SEC for processing the ripple lawsuit and claims that Jay Clayton, Marc Berger and Bill Hinman had a massive conflict of interest.
- The three officials left the SEC to join companies that are allied with Bitcoin and/or Ethereum or act with it, with Hinman even on the salary list during his time.
The XRP community of the Securities and Exchange Commission has accused
long, playing favorites and being biased against the project. Now there is a lawsuit to underpin it. A US government supervisory organization sued the SEC because of its treatment of the Ripple lawsuit and accused the former chairman Jay Clayton and director Bill Hinman to have a conflict of interest that had found it for Ethereum and Bitcoin, but against XRP.
The lawsuit was submitted in the Eastern District of Virginia by Empower Oversight Whistleblowers & Research (Empowr), a non -profit, non -partisan educational organization that focuses on the independent supervision of state and entrepreneurial misconduct.
EMPOWR wants the SEC to meet an inquiry to the Freedom of Information Act in which the organization wants access to the records led by the watchdog. These records concern potential conflicts of interest in some of the leading SEC officials in relation to cryptocurrencies.
es noted:
In particular, the circumstances of the explanations of certain former SEC officials whether certain cryptocurrencies represent securities-and thus subject to second regulation-raise significant questions regarding potential conflicts of interest.
The first goal is Hinman, the former director of the Corporate Finance department at the Sec. Before he came to the regulatory authority, he was a partner at the Simpson Thatcher law firm. Empowr claims that Hinman received millions of dollars from the law firm during his time at the SEC, with a single sales point reporting that the money he received from the law firm was seven times his state salary.
The preservation of the funds is not a crime in itself. However, Simpson Thatcher is a member of the Enterprise Ethereum Alliance, which aims to advance the introduction of Ethereum. It is noteworthy that Hinman already explained in 2018 that Ethereum is not a security.
Strangely Hinman left in December 2020, and in the same month the watchdog directed a law Violation of securities laws.
immediately the SEC announced its charges against Ripple, the value of XRP fell by 25 percent.
Another starting point to the suspicious shops at SEC is Marc Berger. Berger was the former head of the Enforcement Division of the Sec and personally headed the efforts to submit a lawsuit against Ripple. Shortly after he had submitted the lawsuit, he left the Sec and strangely also joined Simpson Thatcher, the company connected to Ethereum, where Hinman works.
former SEC chairman acted in self-interest-Emphowr
Then there is Jay Clayton, the former SEC chairman, under whose leadership the supervisory authority Ripple has charged. In fact, Clayton left the SEC almost immediately after he had charged Ripple and left his successor Gary Gensler (another whose anti-ripple agenda was put to the test) to continue driving it.
Clayton made a record that Bitcoin is not a security, and immediately when he said this, the BTC price shot up. Just like his two colleagues, after leaving the regulatory authority, he joined a private company with interests in cryptocurrencies. Today he acts as a consultant of One River Asset Management, a company that focuses exclusively on Ethereum and Bitcoin.
The lawsuit ended:
It is in the public interest that the government is based on the regulation of the resulting cryptocurrency market by the government on objective legal principles. Therefore, potential conflicts of interest in this area are of considerable public importance.
Source: Crypto-news-flash.com